Solar energy in the highway right of way

Transcription

1 Solar energy in the highway right of way Allison Hamilton Oregon Solar Highway Program Manager Oregon Department of Transportation Lily Oliver Solar Photovoltaic Energy Program Manager Massachusetts Department of Transportation

2 State Smart Transportation Initiative A network of reform-oriented state DOTs, founded in 2010 and housed at the University of Wisconsin. Executive-level Community of Practice Technical assistance Resource for the transportation community 11/2/16 Solar energy in the highway right of way 1

3 The Oregon Solar Highway Program State Smart Transportation Initiative November 2, 2016 Allison Hamilton Oregon Solar Highway Program Manager Office of Innovative Partnerships Oregon Department of Transportation

4 In 2008, the Oregon Department of Transportation embarked on an historic initiative to build the first Solar Highway in Oregon and the nation.

5 What IS a Solar Highway Project? Uses existing public right of way for solar energy generation Land not needed for at least 20 years typical transportation planning horizon Adds value to public ROW asset Adds renewable energy to the grid Provides benefit(s) to the DOT

6 The Time is Right Oregon Energy Legislation: Far-reaching and broad, addressing energy and climate change Governor s Directive: The Governor directed state agencies to strive to meet their electricity needs with 100% renewable resources Leadership: ODOT s Director & the Oregon Transportation Commission tell ODOT to develop real solutions to climate change

7 ODOT Needs Electricity Oregon s transportation system uses almost 50 million kilowatt hours annually at a cost of more than $4 million.

8 ODOT has the Opportunity ODOT has more than 19,000 lane miles of right-of-way. Solar arrays on less than 1% of that could supply all 50 million kilowatt hours ODOT uses annually.

9 World energy use 15 TW-yr per year 15 (15 billion kilowatt-hours x 24 x 365 PER YEAR) Richard Perez

10 23/yr Wind 70 RENEWABLES per year 6 11 Biomass Ocean Thermal Energy Conversion Natural Gas 170 World energy use 15 TW-yr per year 15 Tidal 0.3 Waves Geothermal Hydro 220 Petroleum Uranium Richard Perez FINITE ENERGY RESERVES one and done 900 TW-Yrs Total reserve Coal

11 23 Wind SOLAR 40, Natural Gas 70 OTEC Biomass Petroleum World energy use 15 TW-yr per year 2 4 Hydro Geothermal 220 Tides 0.3 Waves 0.5 Uranium 900 Total reserve Richard Perez COAL

12 Richard Perez All World electrical energy from solar: 0.07% World Land Area

13 Solar Arrays are on European Highways Germany Switzerland England Netherlands

14 Oregon s Solar Resource Offers No Less Promise

15 We Secured Leadership Support ODOT Director Governor s Office Other State and Federal Agencies OSEIA Oregon Solar Energy Industries Association The Baldock Solar Station - ODOT s second solar highway project

16 We Secured Strategic Government Allies Your solar highway initiative is an exciting project that again demonstrates the innovation and creativity that ODOT brings to our Nation s transportation community. The Federal Highway Administration is excited for this project and we look forward to actively supporting you and your staff in seeing this project through development and into construction. ~ Phillip A. Ditzler, Division Administrator, Federal Highway Administration We would definitely like to help ODOT on this as much as we can. I think it's a great idea. ~ Michael W. Grainey, then-director

17 We Secured Strategic Utility Industry Allies I am writing to confirm PGE s commitment to work with you it appears that there is real potential to utilize some of ODOT s right-of-ways, buildings and/or other structures to host a range of renewable resources. ~ Joe Barra, Director, Customer Energy Resources/Distributed Generation It is clear that the Energy Trust is keenly interested and ready to work with ODOT (the ETO) has technical resources and funding available for solar, wind, and biopower electric generation projects. ~ Steve Lacy, Director

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19 Placed in Service December 19, 2008

20 Solar Highway Demonstration Project 104 kw dc ground mounted solar array watt dc solar panels Produces about 130,000 kwhs annually Meets about 1/3 of interchange lighting needs

21 Awarded 2009 Environmental Excellence Award The Oregon Solar Highway Initiative reflects the innovation and spirit of partnership that have helped to develop entrepreneurial and sustainable ways of addressing the nation s transportation and energy needs. 20

22 Called one of the nation s highest transportation priorities by the American Solar Energy Society Congress One of the highest priority transportation activities should be the creation of a full-scale federal transportation program aimed at making alternative solar-based transportation (the solar highway ) a realistic option in the near future. Planners can build this effort on the solar highway demonstration projects already underway, such as the current solar highway project in Oregon. 21

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25 Baldock Solar Station 2 nd Solar Highway Project 7 miles south of first project Vacant rest area land owned by ODOT Use of land approved by Oregon DOJ and FHWA as related to transportation system

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27 Public Private Partnerships ODOT Portland General Electric Financial Institution Site License Solar Project Environmental Benefits Solar Power Public-private partnerships can use tax benefits to deliver solar power at costs no greater than paid for electricity from the grid. Electricity Utility Customers Tax Benefits Oregon Business Energy Tax Credit 50% Federal Tax Credit 30% Accelerated Depreciation Public Purpose Incentives

28 Key Difference: Environmental Benefits Solar Projects Electricity Environmental Benefits Solar Power Demonstration Project Next Projects

29 Transportation Renewable Resources Energy Community

30 ODOT s Solar Highway Goals Complement and not Compromise the transportation system Supply clean, renewable electricity to operate the transportation system Fulfill mandates to develop sustainable energy resources Add value to right-of-way assets and revenue to ODOT Build a foundation for solar highways throughout Oregon and the nation

31 The Oregon Solar Highway Powering the Transportation System of the Future Today Office of Innovative Partnerships & Alternative Funding Oregon Department of Transportation

32 MassDOT Solar PV Energy Program Hongyan (Lily) Oliver Ph.D. Massachusetts Department of Transportation Office of Transportation Planning 11/02/

33 Driving Forces for Renewable Energy Reduce GHG emissions Generate green power Create energy savings Leverage underutilized land 35

34 36 Source: Massachusetts Executive Office of Energy and Environmental Affairs,

35 Regulatory and Policy Environment State incentives: Solar Renewable Energy Credits (SRECs, bid price ~260 $/MWh in 2016) Net metering policy (sell excess power back to the distribution network at retail rates) Solar rebates and grants (mostly residential and community solar) Federal incentives Federal Investment Tax Credit (ITC, 30% of EPC) Modified Accelerated Cost Recovery System (MACRS, 5-year accelerated depreciation for tax base deduction) Interconnection standards (grid-connected)

36 Constructed in KW behind-themeter system Supplies about 10% of power consumption at the D2 admin building. 8 /kwh (PPA) vs. 15 /kwh (blended utility rate) 38

37 Site Selection Full Scale Roll Out Consultant started with a desk-top review of ~600 properties and visited 47 sites 16 sites were vetted through MassDOT s internal canvass process MassDOT sought FHWA s approval of sites involving federal funds MassDOT included renewable energy facilities in its Highway Utility Accommodation Policy update (May, 2013) Full-scale program rolled out in July, 2013 with a RFR Goal: a minimum of 6 MW aggregated solar PV generation capacity Awarded in June, 2014 Two key contract components o Master License Agreement / Power Purchase Agreement o Addenda for specific sites 39 11/2/2016

38 Current Status Phase 1A (5 sites, 2.5 MW) completed in fall of 2015 and in commercial generation Phase 1B (3 sites, 1.8 MW) are under construction Phase 2 (6 sites, 3.5 MW) in pipeline, pending on the next-generation state incentives

39 I-90 Framingham Service Plaza 318 KW I-90 Exit13 N 649 KW I-90 Exit13 S 649 KW I-90 Natick Embankment 272 KW

40 Anticipated Outcomes for 6 MW Solar PV 7,800 MWh per year 1,000 MA households 646 cars driven for a year 3,000 tons of CO2 emissions avoided Sequestration by 2,900 acres of U.S. forest Estimated $15 million savings over the 20- year contract period (in cash flow) CO2 emission factor as 865 lbs./mwh for MA. Source: other conversions using

41 Public-Private Partnership The developer is required to: finance, develop, design, construct, commission, operate, maintain and decommission the contracted solar facilities. MassDOT leases out the parcels, purchases 100% solar power generated, and obtains all net metering credits. The developer receives all SRECs and federal tax incentives, and offers favorable PPA rates in return. 43

42 P3 Benefits to MassDOT Zero upfront capital cost Full utilization of federal tax incentives (~ half of EPC costs) A favorable electricity rate schedule for 20 years Energy savings and lease revenues 44

43 Leadership support Project team Lessons Learned Project leads Internal support from all relevant offices and Highway districts Consultant Developer State regulatory/policy environment External cooperation Utility interconnection Municipal permitting Timeline Project planning and development takes time Be nimble adjust to changes when necessary

44 Thank you! MassDOT Highway ROW Solar project summary: Contact:

45 Site Selection Criteria Site physical characteristics: Solar generation potential Shading/vegetation Topography Existing drainage and underground utilities Distance to 3-phase service drop (< 0.5 mile) Environmental concerns Access and safety FHWA limited access guidance Secondary road access preferred Guardrail, setback space, and staging area Conflicting uses Visibility 47

46 Selected References on Renewable Energy Facilities in ROW Longitudinal Accommodation of Utilities in the Interstate System Right-of-way Purpose Alternative Uses of Highway Rights of Way, by VOLPE center for FHWA Solar Highway Program: From Concept to Reality, by the Good Company for Oregon DOT An Array of Possibilities, in Public Roads, September/October 2015 MassDOT Public-Private Partnership Generates Solar Energy on Highway Rights of Way, AASHTO Center for Environmental Excellence, Energy/Greenhouse Gas Emissions Case Studies

47 Monthly Outputs of Phase IA Sites KWh 49

48 THANK YOU! A recording of this webinar will be on the SSTI web site tomorrow. To find out about future SSTI webinars, subscribe to our newsletter and follow us on Twitter. 11/2/16 Solar energy in the highway right of way 50